Model X may qualify for 50% business write off.

[AxeBro]

I believe u can get a “commercial endorsement or rider” added to your plan

I think it depends on the carrier. both Geico and Liberty Mutual shot me down. The commercial ones weren't willing to cover such an expensive to repair car (their words). I think the only one was Progressive that would even remotely entertain it.

 

[Sappy02]

I think it depends on the carrier. both Geico and Liberty Mutual shot me down. The commercial ones weren't willing to cover such an expensive to repair car (their words). I think the only one was Progressive that would even remotely entertain it.

I agree with that statement. I found ones to underwrite commercial insurance for “regular” business use but not for people transport. The other option is to do personal with a rideshare rider but that may not be enough if you want to go for a commercial livery operation.

 

[Sappy02]

Actually, in the new law the X qualifies for a 100% deduction - not under section 179 but under the Bonus Depreciation which is now 100% under section 168(k). See the article below - excellent piece. IRS won't issue new guidelines until March at earliest - but it is already in effect.

Tax Geek Tuesday: Changes To Depreciation In The New Tax Law

Do you know a tax accountant who is knowledgeable about this deduction? I would like more information on the 100% deduction. Is that after the section 179 depreciation has been applied so that anything after the $25k is deductible under section 168k? Also, what is the expiry date on this deduction? I know it’s effective for assets put into service starting 9/27/17.

 

[MelaniainLA]

Do you know a tax accountant who is knowledgeable about this deduction? I would like more information on the 100% deduction. Is that after the section 179 depreciation has been applied so that anything after the $25k is deductible under section 168k? Also, what is the expiry date on this deduction? I know it’s effective for assets put into service starting 9/27/17.

Yes. Everything after 25k 179 deduction limited by % business use!

 

[Sappy02]

Yes. Everything after 25k 179 deduction limited by % business use!

Cool thanks.

 

[GOPJEW]

Do you know a tax accountant who is knowledgeable about this deduction? I would like more information on the 100% deduction. Is that after the section 179 depreciation has been applied so that anything after the $25k is deductible under section 168k? Also, what is the expiry date on this deduction? I know it’s effective for assets put into service starting 9/27/17.

Any good CPA should be able to handle any questions you have.

If you read the article in full - the 168k bonus depreciation phase out is listed...

You will NOT get to deduct the $25k PLUS 100% - you will simply end up at 100% in year one if you want to - you don't get to deduct extra - it does not work that way.

 

[Sappy02]

Any good CPA should be able to handle any questions you have.

If you read the article in full - the 168k bonus depreciation phase out is listed...

You will NOT get to deduct the $25k PLUS 100% - you will simply end up at 100% in year one if you want to - you don't get to deduct extra - it does not work that way.

Great! Thanks for the clarification.

 

[jtdiddy]

Any good CPA should be able to handle any questions you have.

If you read the article in full - the 168k bonus depreciation phase out is listed...

You will NOT get to deduct the $25k PLUS 100% - you will simply end up at 100% in year one if you want to - you don't get to deduct extra - it does not work that way.

thats not my understanding. i believe you get deduct upto $25k under 179 (heavy car deduction) first and then you can depreciate a full 100% of the remaining price of the X.

see here starting at 3:48

 

[MelaniainLA]

thats not my understanding. i believe you get deduct upto $25k under 179 (heavy car deduction) first and then you can depreciate a full 100% of the remaining price of the X.

see here starting at 3:48

You're both saying the same thing -- you get to ultimately deduct up to 100% the value of the car, but not more!

 

[jtdiddy]

You're both saying the same thing -- you get to ultimately deduct up to 100% the value of the car, but not more!

is the bonus depreciation (100%) for the X because of sect. 179? because in the youtube video, it seems the author is saying the model 3 can only bonus depreciate $8000 vs $68k for the X.

 

[MelaniainLA]

is the bonus depreciation (100%) for the X because of sect. 179? because in the youtube video, it seems the author is saying the model 3 can only bonus depreciate $8000 vs $68k for the X.

That's beyond my pay grade... but yeah, I think the bonus deprecation for vehicles is also limited to heavy SUVs... the only difference is that under the new tax bill, the vehicle can be used OR new!